Newmont exploring Miramar’s Nevada gold properties

Early this year, the company signed an agreement with Orcana Resources, a wholly-owned subsidiary of Miramar Energy Corp. (VSE) to acquire a 51% interest in the 1,450-acre land package which encompasses several past producers. Newmont has been working on the property for about five months, and although details are sketchy, Miramar said it was recently informed that Newmont is “encouraged” by the results it has received to date.

Vancouver-based Miramar originally acquired the properties for their open pit potential and proximity to FMC Corp.’s Paradise Peak gold mine 15 km south of Gabbs. The Paymaster properties are located about 15 mi north of Glamis Gold’s Sullivan mine.

Total production from the properties is reported by the Nevada Bureau of Mines & Geology at 99,625 tons at an average recovered grade of 0.56 oz gold equivalent per ton, or 55,586 oz gold (plus significant silver values). This production was primarily from high grade vein systems on the property, however Newmont’s work is focused on the property’s lower- grade open pit, bulk tonnage potential.

Under the terms of the recent agreement, Newmont is assuming all Miramar’s financial obligations and is paying the company advance royalties totalling $132,000 over a 2-year period.

Under the terms of the agreement, Miramar does not have to participate financially until 1991. At that time (as the option is exercised to purchase the Paymaster properties), the two companies plan to enter into a joint venture agreement which will cap Miramar’s financial responsibility at $245,000(US) within any one year period. If Miramar elects not to participate, it will receive a production royalty of 5% of net smelter returns from production until Newmont recovers its investment from the net proceeds: thereafter Miramar is to receive a 7% net smelter production royalty.

]]>